Cross-border bank transfers

The Council considered the main problem regarding this proposal for a directive on cross-­border credit transfers, i.e. defining the scope of the directive. This proposal was presented by the Commission in November 1994 after it had become apparent that the banking sector’s ‘voluntary’ approach had failed to produce progress towards a rapid and efficient system of transfers and the elimination of abusive charges. It was in line with both the completion of the internal market and the implementation of EMU, and was part of a broader policy advocated by the Commission to put the system of cross-­border payments within the EU on a par with the best national systems. The question regarding the scope is whether to limit it by setting a ceiling for all provisions of the directive. It proved impossible to find a solution on this basis in view of Member States’ widely divergent positions. In these circumstances the Presidency proposed a dual-ceiling compromise - with a relatively modest amount for the guarantee required from banks for refunding customers in the event of non-execution of transfers, and - a substantially higher amount for the other obligations stemming from the directive. Some progress was made on this basis but no definitive outcome was reached. The Council concluded by instructing Coreper to continue work in order to submit a solution that might be adopted.